Tesla Model S Outsells the Market in Some of America's
Wealthiest Cities

2014 Tesla Model S

SANTA MONICA, CA--Oct. 31, 2013: It's no secret that the Tesla Model S
is the newest "must-have" toy among America's most affluent citizens. But a
shocking analysis from Edmunds.com, the premier resource for car shopping
and automotive information, finds that in some of the country's richest
communities, the Model S sells better than any other car on the market.

According to Edmunds.com's analysis of new car registration data from
Polk, the Model S is the top-selling vehicle this year in eight of
America's 25 wealthiest ZIP Codes. The analysis further finds that all
eight communities are located in California. Leading the way is Atherton,
CA, where the Model S accounts for 15.4 percent of all new car
registrations within its borders. According to Forbes, Atherton, which sits
adjacent to Tesla's Palo Alto headquarters, is the wealthiest zip code in
America, with a median home price of $6,665,000.

While the analysis shows that the richest populations are snatching up
Teslas now, Edmunds.com says that the data offers hints about Tesla's
potential to appeal to a broader range of buyers.

"It's a classic pattern for any retail product, including cars: the
wealthy and influential buyers set a trend, and the mainstream aspires to
follow," says Edmunds.com Sr. Analyst Jessica Caldwell. "As Tesla increases
the number of models and improves its price points, it could find itself in
demand by more than just those in these wealthy enclaves. After all, luxury
car companies typically find the most volume in their entry-level
vehicles."

Tesla has made it clear that its next frontier is to make its vehicles
more affordable to the mass market. In May, Tesla CEO Elon Musk shared that
he hopes to offer a vehicle to car shoppers for under $40,000 within the
next four years.

If Tesla does plan to break through to new buyers, it will have to
expand its appeal outside of California's borders. Edmunds.com's analysis
found that Tesla's market share exceeds 1.0 percent in only one of the
non-California zip codes ranked in the top 25 by Forbes (#19 Water Mill, NY
with 1.2% of all new car registrations in 2013, through August). The Model
S national market share sits at just 0.1 percent.